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01/09/2007

Manufacturing Insights Top Ten Predictions Reveal RFID Pay Off for Those with Patience

FRAMINGHAM, MA – JANUARY 9, 2007 – IDC's Manufacturing Insights today reveals Radio Frequency Identification (RFID) to pay off for those manufacturers and retailers who remain patient. The Worldwide Manufacturing Top 10 Predictions report, published annually by the research and advisory firm, also notes that most companies continue to resist moving beyond RFID pilots for the lack of business justification, although tag prices have decreased and new technology generations have improved effectiveness. Manufacturing Insights' Vice President of Research, Bob Parker, will present and elaborate on RFID predictions and more during a web conference today (January 9, 2007) at noon ET.

"There is little doubt that in 2007, and beyond, companies will find the need to improve their ability to capture data in a more timely, accurate, and complete way," states Parker. "This requirement will dictate the development of a data acquisition platform that will incorporate many technologies, from bar codes to sensors to RFID tags."

According to the report, the long term nature of these investments will not bode well for smaller technology providers dedicated to a single RFID technology. Adds Parker, "We expect these small technology providers to position themselves for acquisition, which will be the only alternative to failure."

Other predictions in the Manufacturing Insights report include:

— Lean, Six Sigma, and SCOR convergence will accelerate

Early research has demonstrated how complementary the three

disciplines are as the weaknesses of each mitigates the other two.

— China will continue to overheat

There are implications of this overheating as China, flush with

cash, will look to continue to solidify itself as the manufacturer

to the world.

The Worldwide Manufacturing Top 10 Predictions web conference is part of an Industry Insights weekly series that kicked off on January 8, 2007. Industry Insights' Top 10 Predictions is an annual web conference series hosted by IDC's five industry-specific research companies, covering energy, financial services, government, health and manufacturing. Discussions focus on how the Top 10 Predictions in each of these segments will impact technology spending patterns, organizational structures, and industry performance. To register for the web conferences, go to: http://www.idc.com/webconferences

About Manufacturing Insights (an IDC company)

Manufacturing Insights, an IDC Company, provides business and IT decision-makers with fact-based research and analysis to inform and support critical business decisions. The global independent research and advisory firm closely follows processes associated with the design, development and distribution of goods across markets including Discrete Manufacturing, Process Manufacturing, High Tech/Electronics Manufacturing, Consumer Packaged Goods and Retail. Manufacturing Insights' research and analysis is critical for end-users, as well as hardware and software vendors, service providers, and purveyors of IT outsourcing. Founded in January 2005, Manufacturing Insights is headquartered in Framingham, Mass. Visit www.manufacturing-insights.com for more information.

IDC is a subsidiary of IDG, the world's leading IT media, research and exposition company.